My partner and I want to buy our first home this time next year but I may start my PhD studies then
Q My partner and I are hoping to buy our first home around this time next year. While we will have a (hopefully) decent deposit of £25,000 behind us and we both have a strong credit history, there is a chance that I will be starting a full-time PhD around the time we make an application for a mortgage. The PhD would be funded by a grant that would provide me with £15,000 a year tax free to live on as well as covering my academic fees. My question is, would a mortgage provider accept this grant as income rather than a salary? Would my not being technically employed pose any problems?
A Yes, being on a grant will pose a problem when it comes to getting a mortgage – but not an insurmountable one. People studying for a PhD – as well as members of the clergy and some charity workers – who receive what is referred to as stipend income will find that most high street lenders will turn down any mortgage application. However, not all lenders regard stipend income as an unreliable source of income and will be prepared to take a mortgage application seriously.